How to Make Computation in Case of Reverse Charge

Last updated at April 16, 2024 by

In GST Computation, We show Reverse Charge in both Output and Input separately
Output Reverse Charge ,we show in GST Payable
Input Reverse Charge we can adjust with Output GST on Sales 
 
Lets understand this with help of an example
 
Example 1
Normal and reverse charge 1.png
 

Example 2

normal n reverse charge 2.png

 

Example 3

normal and reverse charge 3.png

 

 

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Transcript

Reverse Charge Computation Normal Case Normal Case + Reverse charge 200+5000 4200 Purchase 80000 + 4000 GST Sales 100000 + 5000 GST Sales 100000 + 5000 GST Also there is Reverse Charge bill of 4000 Suppose GST on Rev Charge =5% of 4000=200 Purchase 80000 + 4000 GST Output on Sales Input on Purchases GST Payable GST Credit 5000 4000 1000 0 Output on Sales Input on Purchases GST Payable GST Credit 5000 4000 1000 0 Output Reverse Charge Total Output Input Reverse Charge Total Input 200 200 5200 4200

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.